Jan 01 1998

The Effects of Human Resource Practices on Credit Union Employees and Performance

Professor Whitener surveyed 1,733 credit union employees at 185 credit unions and found that, regardless of size, a credit union can improve its performance by implementing modern human resource practices.

Credit unions whose employees reported more positive attitudes performed better than credit unions whose employees reported less positive attitudes. Human resource practices such as developmental appraisals, externally competitive and internally equitable compensation, merit-based promotions, and periodic attitude surveys were significantly related to attitudes such as perceived organizational support, trust in employer, and trust in supervisor. Perceptions of organizational support and job satisfaction appears to lead to better management of the loan portfolio, as reflected in measures of asset quality.